Farmers Facing Bleak Future In Panama Because Of Noriega

April 21, 1988|By DAVID E. PITT, The New York Times

PANAMA CITY, Panama -- This country`s large private farmers, who helped make Panama self-sufficient in agriculture more than 15 years ago, are on the brink of financial oblivion as a result of the crisis over the continued rule of Gen. Manuel Antonio Noriega.

``There is no credit in Panama -- not for agriculture, not for anything,`` said Reinmar Tejeira, whose 2,000-acre family run rice farm in the western province of Cocle is one of the largest in the country.

With the rainy season about to begin, Tejeira would ordinarily be preparing the soil to plant a new crop. But he lacks the $500,000 he needs for seed, fertilizer, herbicide, fuel, and salaries. The banks are still not dispensing cash for loans or withdrawals, because of the cash shortage caused by U.S. economic sanctions.

This week, Tejeira has tentatively decided to lay off his 50 workers and close the farm, although he is considering an 11th-hour plea from the workers to keep them on a two-days-a-week schedule.

But he said it was possible that Tesko Farm, once closed, will not reopen. ``I`m up a creek,`` said Tejeira, a ruddy-faced soil specialist, educated at Ohio State and the University of Florida.

Tejeira, who also grows such cash crops as tomatoes, onions, melons, and okra, may have one of Panama`s biggest, most modern farming operations, but he is not alone in his predicament.

There are about 400 other privately owned, mechanized farms in Panama, and virtually all have put off a decision on planting because of the bleak financial and political picture, according to bankers and agricultural experts.

Tejeira said he had heard of only one farmer in the entire country -- a potato grower -- who was daring enough to begin planting preparations in the current political and financial atmosphere.

Another farmer, who asked that his name not be used, said: ``My personal feeling is that unless Noriega leaves, we`re all finished.``

The farmers running big operations are numerically in the minority. The majority of Panama`s estimated 10,000 farmers run tiny operations, tending their livestock and crops manually, without the benefit of advanced machinery or the need for large bank loans. All told, about 35 percent of Panama`s 2.2 million people are involved in agriculture.

Livestock growers are also in trouble. Poultry farmers have been struggling to find ways to cover feed costs. The soybeans and corn used in chicken feed are not commercially grown in Panama and have to be imported at considerable expense.